Full Description

The Talbots, Inc. (Talbots) is a specialty retailer and direct marketer of women’s apparel, shoes, and accessories. The Company operates stores in the United States and Canada. In addition, its customers may shop online or via its catalogs. The Company’s products are sold through its 587 stores, its circulation of approximately 55 million catalogs during the fiscal year ended January 31, 2009 (fiscal 2008) and online through its Website. AEON (U.S.A.), Inc. (AEON (U.S.A.)), which is a wholly owned subsidiary of AEON Co., Ltd. The Talbots offers a collection of classic sportswear, casual wear, dresses, coats, sweaters, accessories and shoes, consisting almost exclusively of Talbots own branded merchandise in misses, petites, woman and woman petite sizes. As of January 31, 2009, Talbots operates in two business segments: Retail Stores and Direct Marketing. In July 2009, the Company announced the sale of J. Jill brand business to Jill Acquisition LLC, an affiliate of Golden Gate Capital.

Retail Stores

The Company’s retail stores are located in 47 states, the District of Columbia and Canada under the Talbots brand name. During fiscal 2008, Talbots retail stores segment accounted for 84% of its total Company sales from continuing operations. Continuing operations include results from its core Talbots brand only and excludes results from J. Jill and its Talbots Kids, Mens, and United Kingdom businesses. Talbots offers Talbots brand merchandise in petites sizes in its catalogs and stores. Talbots Woman is the Company’s plus size concept. It also offers Talbots Woman Petites. Talbots Woman and Talbots Woman Petites are available in stores, through its catalogs, and online. A limited collection of accessories and shoes merchandise is offered in each major catalog and online and in virtually all stores. Talbots Collection merchandise is available in stores, catalogs, and online. As of January 31, 2009, the Company had 41% of its store locations in specialty centers, 31% in malls, 22% in village locations, 4% in outlet locations, and 2% in urban locations.

Direct Marketing

Talbots direct marketing segment includes its catalog and Internet channels. During fiscal 2008, the Company’s direct marketing business segment represented 16% of its total sales from continuing operations, with the Internet channel comprising 68% of its total direct marketing sales from continuing operations. During fiscal 2008, the Company issued 22 separate Talbots brand catalogs across all business concepts with a circulation of approximately 55 million.